Pakistan has the potential to generate between 40 million and 75 million tons of tradable carbon credits annually, translating into revenues of $400 million to $2.25 billion, according to a new report released Tuesday by Transparency International Pakistan. The report, Carbon Markets Readiness in Pakistan: Addressing Governance Gaps and Safeguarding Against Integrity Risks, highlights opportunities and challenges in developing a credible carbon market, while stressing the need for strong governance frameworks to ensure transparency and community trust. “If even 10 to 15% of Pakistan’s annual greenhouse gas emissions were addressed through carbon projects, the country could unlock a substantial revenue stream from voluntary markets,” the report noted. It recommends establishing a dedicated carbon markets team within the Ministry of Climate Change and provincial departments. The report sets out 10 recommendations, including the development of robust data systems, a comprehensive carbon market law, institutional safeguards for equity and participation, and the creation of a National Carbon Coordination Council to oversee carbon trading.